Boohoo Lifted Forecast, Elis in £2.2 B Deal with Berendsen

4:00 PM Frankfurt – Auto Trader profit surged on 9% jump in revenues. Boohoo revenues doubled and raised £50 million through share sale and the retailer also lifted fiscal revenue forecast. Berendsen agreed for £2.2 billion takeover bid from French rival Elis. Flybe net swung to a loss.

In London trading, FTSE 100 index fell 23.05 or 0.3% to 7,455.13 and in Frankfurt the DAX index gained 44.75 or 0.3% to 12,717.24.
In Paris, CAC 40 index slid 1.24 to 5,265.

Auto Trader Group Plc declined 5% to 410.10 pence after the U.K.-based online vehicles sales marketplace operator reported revenues in the year ending in March jumped 9% from a year ago to £311.4 million.

Net profit in the year surged 22.1% from a year ago to £154.7 million from £126.7 million and diluted earnings per share advanced to 15.60 pence from 12.65 pence.

The marketplace operator said operating profit in the year soared 18% to £203.1 million and pretax profit surged 23% to £193.4 million while net debt dropped £37.6 million to £355 million from a year ago period.

Boohoo.Com Plc surged 11.9% to 247 pence after the U.K.-based online fashion retailer said that the company has completed £50 million through share sale of 36.6 million shares help a new warehouse.

The acquisition cost

The acquisition of land and construction site will cost of about £150 million over three years to fiscal 2020.

The retailer plans to construct a new “”automated super-site”” of 600,000 square feet which is intended to provide boohoo with over £2 billion of net sales capacity, in addition to the estimated £1 billion net sales being provided by the extended Burnley site.

Boohoo said group revenues in the first-quarter ending in May doubled from a year ago to £120.1 million and comparable sales soared 78%. Revenues jumped 48% to £86.4 million after sales in the U.K. surged 41%, sales in Europe advanced 44% and sales in the U.S. surged 97% while sales in the rest of world jumped 50%.

Active members in the quarter increased 24% to 5.2 million form same period a year ago.

The retailer revised current year revenue to jump 60% from the earlier estimate of 50%.

Elis SA slid 0.1% to €20.08 after France-based laundry services provider revised its offer to buy the U.K.-based rival Berendsen Plc for £5.40 in cash and 0.403 new Elis shkares for each share of Berendsen and lifted revised offer to £2.2 billion from £2.05 billion.

Berendsen returned to Elis on revised higher offer of £150 million after repeated rejections.

However, based on closing price of Elis, possible offer values each Berendsen share at £12.50 per share, excluding the interim dividend that implies a total equity value of about £2.2 billion on a fully diluted basis.

The offer consists 43% in cash and 57% in Elis stock.

Berendsen Plc stock jumped 9.8% to 1,215 pence.

Flybe Group Plc jumped 3% to 33.99 pence after the U.K.-based budget airline services provider said revenues in the year ending in March soared 13.4% from a year ago to £707.4 million.

Net in the year swung to a loss from a year ago to £26.7 million from profit of £6.8 million and diluted loss per share swung to 12.3 pence from diluted earnings per share of 3.1 pence.

The carrier reported a pre-tax loss of £19.9 million and write-off of intangible assets totalled to £4.3 million to an upgrade of its IT systems.

Rocket Internet SE slipped 1.3% to €20.72 after Sweden-based Kinnevik AB said that Kinnevik Internet Lux Sarl sold its remaining 6.6% stake or approx 10.9 million shares at a price of €20 or $22.50 per share to institutional investors and the gross proceeds will amounted to €217 million.

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